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Financial and Economic Dictionary

A collaborative initiative uniting 11 partners from the government sector, this dictionary is built to serve as a unified reference and vital knowledge hub for specialists and enthusiasts alike. It aims to enhance financial literacy, support the Kingdom's development process in light of Saudi Vision 2030, at a time when terminology is no longer just a linguistic tool, but have become pillars of knowledge on which policies are built, legislation is formulated, and dialogue between specialists, decision-makers and relevant authorities in the financial sector is managed.

Your gateway to comprehensive financial knowledge with more than 2000 financial and economic terms

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Most searched terms

Allocation for Previous Years Reclassification

Appropriations allocated to the entity's budget elements to pay dues from previous years.

Microeconomic

The branch of economics that focuses on individual and business decision-making.

Contingent Liability

Are potential financial obligations that may or may not materialize, depending on the outcome of future events, contractual terms, or legal disputes.

Non-Recurring Revenues

Revenues that are not collected regularly or periodically, come from non-permanent or unexpected sources, and are the result of exceptional events.

Remaining of Cost

Adjusted costs after deducting actual expenditures to date, including amounts reserved or encumbered.

Cost-Benefit Analysis

A decision-making process comparing the costs and benefits of an investment or action.

Discounted Cash Flow (DCF)

A valuation method that estimates an investment’s worth based on projected future cash flows.

Audit

The systematic examination and verification of financial records, statements, and transactions to ensure accuracy, compliance with regulations, and the prevention or detection of fraud or errors.

Valuation

The process of estimating the worth or value of an asset, investment, business, or property, often using various methods and approaches.

Fixed Costs

Business expenses that do not change with production levels, like rent or salaries.

Financial Balance of Items

The execution price of an item represents the actual and fair value of it.

Securitization

The process of pooling financial assets and converting them into tradable securities.

Preserving Assets

Safeguarding assets belonging to another person which include securities, or arranging for another person to do so, and custody includes taking the necessary administrative measures.

Creditor Rights

Assessing an entity's willingness to repay debt, which impacts credit ratings.

Stagflation

An economic condition characterized by slow growth, high unemployment, and inflation at the same time.

Fiscal Policy

Government decisions on taxation and spending to influence the economy, such as increasing spending to boost growth or raising taxes to control inflation.

Monetary Policy

The process by which a central bank manages money supply and interest rates to influence economic growth.

Closed-Ended Investment Fund

A type of collective investment fund that raises a fixed amount of capital through an initial public offering (IPO).

Money Supply (M2)

Currency in circulation outside banks plus demand deposits + time and savings deposits.

Fines

Economic benefits or service potential received or receivable by public sector entities, as determined by a court or other law enforcement body, as a consequence of the breach of laws or regulations.

Loan

Financial arrangements where one party lends money or assets to another party, often with the expectation of repayment with interest.

Private Sector Participation (PSP) Governing Rules

A set of regulations and laws issued under the system to regulate the privatization process.

Proposed Budget

A document containing all the detailed data and models related to realistic human and financial estimates of actual needs for all expenditures, programs, and budget projects for the upcoming fiscal year.

Consideration

Everything collected or to be collected by the Taxable Supplier from the Customer or a third party for the Supply of Goods or Services inclusive of the Value Added Tax (VAT).

Reclassification of Entity Budget

Reclassification of the saving amounts, between the budget elements, (workers’ compensation, goods and services, the program and the project) to other elements that need to support their allocations to pay dues during the fiscal year within the government budget.

Liquidity Ratio

A measure of a company’s ability to meet short-term obligations, often calculated as current assets divided by current liabilities.

Alternative Trading System

An Exchange authorized by the Capital Market Authority to carry out trading in specific types of securities, for specific categories of investors.

Financial Ratio

Quantitative indicators used to assess an organization's financial health, performance, and efficiency by comparing key financial variables and relationships.

Business Case Document

The document of the Private Sector Participation (PSP) Project that include the detailed study developed for the PSP Project before tendering, including the technical, financial, legal and regulatory aspects of the project and other project-related aspects.

Deposits

An amount of money or a non-monetary asset, such as precious metals like gold and silver, deposited with financial institutions or central banks for a specific purpose.

Income Tax

A direct tax imposed on resident capital companies for shares owned directly or indirectly by non-Saudi persons, or on persons working in the production of oil and hydrocarbons. It is also imposed on non-Saudi natural persons residing in and practicing economic activities in Saudi Arabia, and on non-resident persons who practice economic activities in Saudi Arabia through a permanent establishment, or who have taxable income earned from sources in Saudi Arabia without having a permanent establishment, and for every person working in the field of investment, transportation of natural gas.

Tax on Income, Profits and Capital Gains

Taxes assessed on actual or presumed income, including taxes assessed on holdings of property, land or real estate when such holdings are used as the basis for estimating the income of their owners (including corporate and establishment income tax, and withholding tax for non-residents).

Claim Journey

The series of actions that take place on the claim from the time it is registered on the Etimad Platform until it is approved or rejected.

Beneficiary Offboarding

The process customers go through when they stop using a digital product or service.

Financing Agreement

A set of documents under which a loan is provided. It includes documents for loan agreements, finance agreements, and debt agreements.

Consortium Agreement

The contractual relationship between consortium members. Sets out in detail how responsibilities, risks, and rewards will be shared and/or allocated among the members.

Supply Chain Disruptions

Disruptions in supply chains causing delays, and increased costs.

White-Box Testing

A method of software testing examining internal structures and workings.

Leveraged Buyout (LBO)

The acquisition of a company using a significant amount of borrowed funds, with the target company's assets often used as collateral.

Underwriting

The process by which financial institutions assess risk and approve securities, loans, or insurance.

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